Stock Maintenance and Condemnation

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Stock Maintenance and Condemnation

• Sources
• Accounts Code

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INTRODUCTION IT IS UTMOST IMPORTANCE THAT
ARTICLES OF VALUE ARE PROPERLY STORED SO THAT
THESE MAY BE MADE USE OF READILY AS AND WHEN
REQUIRED AND ALSO SERVE FOR THE FULLEST PERIOD OF
THEIR EFFECTIVE LIFE.
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Types of stock registers

• Consumable

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• Non Consumables

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Physical Verification of Stores

• Physical verification of the quantities and
  condition of items held in an inventory, as a
  basis for accurate inventory audit and valuation.

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Frequency of stock verification

• Once a year Before 31 march after the Annual
  Examination is over.

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• excesses or shortages noticed as a result
  abstracted in a list, department-wise, in the
  following form in triplicate

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Format

• NAME OF THE DEPARTMENT
• Stock as per
• Stock Name of ____________ Excess ()
  Results of
• Regr. the
• Page article Stock Physical Shortage
  (-) investigation

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Excess

• Excesses should be investigated to find out any
  omission or shortage in accounting with reference
  to the invoices of articles received. They
  should be brought to account in the Stock
  Register with suitable remarks and proper steps
  taken to safeguard against such omissions or
  commissions in future.

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Shortages

• Shortages indicate losses or breakages in
  handling and as such required detailed
  investigation. The lines on which investigation
  should be conducted are indicated in Article 187

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• Whenever there is a change in the incumbency due
  to transfer, death, etc In regard to loss of
  stores due to theft, report should be sent as
  explained in Article 235.

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• In regard to loss of stores other than due to
  theft, responsibility has to be fixed on the
  stock holder. For this purpose a report should
  be furnished immediately after such losses come
  to notice.

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loss of stores due to breakage

• As and when breakages arise, action should be
  taken to fix responsibility on the student or
  staff at fault and to recover the cost price or
  market price, whichever is higher. A receipt in
  form CS 12 should be issued to the part concerned
  and the amount credited as miscellaneous income

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• A receipt in form CS 12 should be issued to the
  party concerned and the amount credited as
  miscellaneous income.
• A note of the breakage should be kept in a
  register in form CS 48.

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• As regards other breakages, that is, accidental
  breakages while conducting experiments, an
  on-the-spot investigation should be conducted by
  the Principal and the result thereof recorded in
  a register which should be
• for each department separately.

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CERTIFICATE

• Certified that the stock is physically verified
  as per the stock register pages from To found
  correct as on date and signature of the members
  of verification committee.

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Condemnation Board

• As soon as the annual physical verification is
  completed, a Condemnation Board consisting of two
  members of the Management Committee and the
  Principal should be constituted.

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• to investigate into the deficiencies in the stock
• make recommendations to the Sangathan either for
  recovery of the cost of articles or write off the
  cost price of the articles.

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• While making recommendations for write off, the
  Condemnation Board should take into consideration
  the period of effective life of the article

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Powers of condemnation Board

• The report of the losses/breakages should be
  considered by the Excutive Committee, VMC who has
  full powers up to Rs2,00,000/- in a year to
  condemn stores of all kinds.

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• Cases involving condemnation of stores beyond
  this limit and all cases involving fraud,
  embezzlement, misappropriation or theft will be
  condemned with the approval of Deputy
  Commissioner, KVS RO concerned.

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• The report of the losses/breakages should be sent
  to the Regional Officer along with the minutes of
  the Executive Committee/VMC each year.

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Format of condemnation of articles List
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Life of assets fixed by KVS
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• However, if the total book value of articles to
  be written off works up to Rs.500/- the articles
  may be written off under the powers delegated to
  the Principal and a copy of the sanction along
  with the report submitted to the Regional Office
  in duplicate.

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• No articles should be written off from the Stock
  Register without proper sanction and a reference
  to the sanction No. and date should be given in
  the Stock Register in support of the entry for
  write off.

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CALENDAR OF ACTIVITY FOR ANNUAL VERIFICATION OF
STOCK AND CONDEMNATION PROCESS
MONTH ACTIVITY
April/may/june Conduct of annual Physical verification of stock
July Preparation of ist of Articles for written off
August Condemnation board meeting and write off of unserviceable article up toRs 2 lakhs(excluding cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired.
Ist week of September Submission of proposal for write off unserviceable articles beyond Rs 2lakhs to KVS RO
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Delegation of powers for Condemnation of stores
S.NO AUTHORITY Powers delegated in respect of KVs Powers delegated in respect of Ros/ZIETs
1 Commissioner Full powers including cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments Full powers including cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments
2 Additional commissioner(Admn) ------------------------------------ Up to 5 lakhs per annum excluding cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments
3 Deputy Commissioner/director of the region/ZIET concerned Full powers Up to Rs 5 lakhs per annum excluding cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments Up to Rs 2 lakhs per annum excluding cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments
4 Executive Committee of VMC Up to Rs 2 lakhs per annum excluding cases involving fraud,embezzlement,fire,misappropriation or theft and the articles whose life span has not been expired including IT equipments ----------------------
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CONDEMNATION OF IT EQUIPMENTS
IN THE MATTER OF CONDEMANTION OF IT EQUIPMENTS
THE PROCEDURE PRESCRIBED VIDE CIRCULAR NO
F110240/(6)/2009-KVS/(HQ)/(BUDGET) DATED
26-08-2009 WILL BE FOLLOWED
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Conclusion

• Stock verification ensures -
• The proper, efficient and effective maintenance
  use of materials in the stock, and
• The accountability in the system.